John Pugh

Period 5
May 24, 2015

Global Economics Mini-Paper

Question #2: Colin Powell Remarks

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Imagine a force so strong it has the ability to drop a tax on imports from over 80% to an
average of 30%, helping the poorest citizens in the developing country of India in the 1990s.
Now imagine that same force being the direct cause of 3.2 million U.S. jobs being outsourced to
China. This force is a process known as globalization. Globalization is the integrating of global
economies by free-trade, flow of capital, and the utilization of cheeper foreign labor markets.
Globalization has stirred up a great deal of dispute and controversy amongst groups of
people who cant seem to decide if it is the cause of more positive or negative results. Many
believe globalization is a demon that is the pure cause of jobs being ripped from the hands of
citizens, and sent overseas to countries where labor is cheeper. In addition, this cheeper labor is
often a concern due to hazardous working conditions, as well as slave labor wages. Many others
believe that globalization is the angel that is making this world a better place, bringing many
people out of poverty, and unifying citizens all over the world.
In 2002, U.S. Secretary of State Colin Powell made an extremely rational remark regarding
globalization and how it should truly be looked at by the public eye. He said, Like scientific
knowledge, globalization in and of itself isnt a force of darkness or a force for light; the issue is
how we respond to this powerful force, how we use it to create hope for ordinary men, women,
and children around the world. This statement is not only accurate, but it also encompasses an
incredible strategy regarding how the world should take on globalization.
The accuracy of this statement is first displayed in the sense that Powell made clear how
powerful globalization really is. Globalization is an effort that can take this world in one of many
different directions. Globalization could be a force of darkness, causing unemployment
throughout many countries. It could also be a force of light, merging countries economically, and
lowering prices for consumers, worldwide. The outcome truly is dependent on how all of the
different countries choose to handle the strong force that has been put in front of them.
As far as the future of globalization, Powells statement gives the world an excellent mission
statement economically. When Powell said we must use globalization to create hope for ordinary
men, women, and children around the world, he was giving the motivation necessary to take
globalization, and use it in a positive way.
Although globalization has accounted for lost jobs in developed countries, it has brought
opportunity for work to many developing countries. Through globalization, companies have
expanded into developing countries because the cost for labor is much cheeper there. This has
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created a large increase in employment for developing countries, as well as cheeper prices for
consumers in developed countries. This strongly ties back to Powells statement in that men,
women, and children around the world are being given hope to pull themselves out of poverty by
working. If there is no opportunity for employment, what chance do people in developing
countries stand economically?
Another way that globalization can offer hope to those specifically in the poorest of
developing countries, is through opening them up to trade. When countries open up to trade,
they tend to grow much faster, and in turn, living standards increase. Trade helps countries
develop for many reasons. Trade generates growth through more commercial opportunities, helps
to move up the global value chain, encourages innovation, lowers prices for consumers, opens up
new markets, facilitates export diversification, boosts quality of products, as well as many other
things that help countries to develop. This gives many citizens of developing countries hope
because it gives them the boost that they need to continue their journey. Developing countries are
in need of these positive affects that globalization has to offer.
There is a need for products to be created for a cheep amount of money. Developing
countries have a need for employment in order to continue progress in their journey.
Globalization offers a solution to this in the outsourcing of goods to be created in developing
countries. This is how globalization is taken and used as a force of light. There are still some
areas of darkness that must be overcome. This includes working conditions in developing
countries. The people working in these countries are not under proper circumstances. However,
even with the working conditions where they are now, globalization has still made people better
off than they were before.
Colin Powells statement perfectly sums up globalization in saying that it is not a positive or
negative thing. Many people are debating on either of the two sides, but they must realize the
answer is uncertain. It is whether or not, globally, countries decide to compliment each other
economically, forming the perfectly integrated relationship. That is the potential globalization has
for the world. It offers the potential of hope for men, women, and children all over the world.
Globalization is all about communication, and now, countries must learn to communicate and
form that perfect balance of interconnected trading. Once this goal is reached, developing
countries will have the hope they need to continue striving for economic success. With

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globalization, countries are given the extraordinary opportunity to lend a helping hand to other
nations in need.

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Bibliography
http://insights.som.yale.edu/insights/how-has-globalization-benefited-poor
https://blog.udemy.com/impact-of-globalization/
https://www.foreignaffairs.com/articles/united-states/2011-06-02/
globalization-and-unemployment
http://www.usnews.com/news/blogs/data-mine/2014/12/11/outsourcingto-china-cost-us-32-million-jobs-since-2001
http://www.merriam-webster.com/dictionary/globalization
http://www.manufacturing.net/articles/2010/06/the-pros-and-cons-ofglobalization
http://trade.ec.europa.eu/doclib/docs/2012/january/tradoc_148991.pdf
http://www.unworldyouthreport.org/index.php?
option=com_k2&view=item&id=39:how-does-globalization-have-positive-and-ornegative-effects-on-your--and-your-friends--efforts-to-secure-a-job?&Itemid=147

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